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WHITBREAD plc, the UK’s largest hotel and restaurant group, has taken over the 64-bedroom Prestige Hotel, in South Shields.

Whitbread, which owns budget hotel brand Premier Inn, has agreed a long-term lease for the hotel with North-East-based investment property company Prestige Group, which has owned the hotel since 2003.

The former brewer now has more than 1,200 outlets nationwide, including the Brewers Fayre, Beefeater and Costa restaurant chains. It plans to re-brand the hotel as a Premier Inn.

Prestige Group, which has a large property investment portfolio, has built several elderly care homes in the North-East, and a 40-apartment sheltered housing scheme - most of which are now leased long-term to leading care home providers such as Southern Cross.

Owner Raj Singh said the lease of the hotel was necessary to allow the company to focus on new development sites in the care sector.

He said: “It was a sad day to walk out of the Prestige for the last time, a big wrench. A lot of people questioned our decision to buy the hotel nearly five years ago, but, after a lot of hard work and investment, it is now a superbly run hotel, with high levels of occupancy, good room rates and attractive turnover. I will always be proud of what we have achieved at the Prestige.”

The Prestige has a 300-capacity function room, bar, restaurant and two smaller function rooms.

Whitbread has acquired the hotel on an annual rent of £270,000, with fixed increases in years six and ten. All staff will be retained.

Kevin Murray, regional acquisitions manager for Whitbread, said: “This is great news for Premier Inn as a company and we are looking forward to building on the high standard of service Prestige has already been employing. We are positive the hotel will prove a huge success and look forward to offering great quality, affordable accommodation to guests visiting South Shields.”

For further information contact Kevin Murray on 07774 400041.

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